What Causes the Long-Run Aggregate Supply Curve to Shift Right

question 85

Multiple Choice

What causes the long-run aggregate supply curve to shift right?

• A) economic growth
• B) inflation
• C) unemployment
• D) scarcity

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Definitions:

Real Incomes

Income of individuals or nations adjusted for inflation, reflecting the purchasing power of the income.

Nominal Interest Payments

The amounts paid by borrowers to lenders as the cost of borrowing money, not adjusted for inflation.

Interest Payments

Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.

Real Values

Economic measures that are adjusted for inflation, reflecting the actual buying power of money or assets.